Rent to Low Credit Applicants with a Co-signer?

[Jason L.]

I had some applicants apply to one of my listings who seem like nice people but have terrible credit (480). I denied their application for not meeting the minimum qualifications. They are now saying that their parents, who have an 800 credit score and good income, are willing to co-sign on the lease. I don't have any experience with applicants using co-signers on a lease. Is it worth pursuing or should I stick with my gut to deny the application?

[Greg Scott]

Jason:

Good that you had your qualifications defined.  What was the reason that their credit score was so bad?  

I've seen situations where tenants had a medical problem and lost their job.  That one-two punch destroyed their credit.  If they are beyond those problems, they may be great tenants.  

However, if their credit is bad because they are stupid with money management, they will always be nightmare tenants.  Yes, you will probably, eventually get paid -- by their parents.  However, you will spend many hours each month chasing late rent.  That is not something you want to do.